Finnish Commerce Federation: The government maintained income tax reductions, but additional cuts to innovation funding hamper growth
The Finnish Commerce Federation is pleased that the government maintained the decisions related to reducing income taxation that were agreed in the spring. The solution supports domestic demand and gives consumers more purchasing power. Instead of cuts, innovation funding should be increased to improve productivity.
“It is important that the government maintained the decisions that were already made to reduce income tax at all income levels. These decisions contribute to strengthening consumer confidence and supporting the recovery of private consumption. At the same time, they help to boost economic growth and employment,” says Kari Luoto, Managing Director of the Finnish Commerce Federation.
The Finnish Commerce Federation also considers it important to reinstate the car scrapping bonus scheme.
“The measure would accelerate the renewal of the car fleet, reduce emissions and support domestic car sales,” says Luoto.
In addition, the Finnish Commerce Federation thanks the funding allocated to providing employment to young people, which helps especially small companies in the commerce sector to employ young people in the early stages of their career. Commerce is the largest employer of young people in the economy.
The Finnish Commerce Federation believes that the additional cuts in innovation funding are harmful. Strengthening innovation activities would help the internationalisation of domestic e-commerce and specialty goods trade, among other things.
“Instead of cuts, innovation funding should be increased and allocated more broadly to the business sector in order to improve productivity and accelerate new growth,” says Luoto.
For further information, please contact: Kari Luoto, Managing Director, Finnish Commerce Federation, tel. +358 (0) 400 688 708, kari.luoto(at)kauppa.fi